
US Tariff Impact: The US has imposed 50% tariff on imports from India, which has affected India's exports. India is looking for a new market and is facing this challenge by increasing domestic demand.
Trump tarifs on india: 50% tariff imposed on imports from India by US President Donald Trump came into effect from 27 August. If this continues, India's exports to America will be less. What are the methods like expanding the export market and increasing domestic demand to reduce the loss. Let's know in 10 points.
What is the arrangement of India to reduce losses from American tariffs
1- According to the NDTV report, the Ministry of Commerce can hold several meetings with the leaders of industry, business representatives and counterparts from other countries in the next 72 hours to bring diversity in exports. Access can be made in new markets to sell goods made in India. There is pressure on India to compete with minimal disruption of tariffs. The most affected by this has been the labor -intensive area.
2- India is contacting 40 countries including England, Japan, European countries and Australia for textile exports. In FY 2025, India's textile and apparel sector exported $ 37 billion (Rs 3.24 lakh crore) to the US.
3- The government plans to establish India as a reliable supplier of high quality, durable and innovative products. India already exports to more than 200 countries. 40 of these countries are important. They jointly import cloth and costumes worth $ 590 billion (Rs 51.79 lakh crore).
4- Schemes are also being made to expand export markets for other areas such as shrimp rearing and leather. Agra's leather shoe exporter Puran Davar told Associated Press that the industry would suffer a setback if other foreign markets- big markets like England, France and Germany- do not buy more leather shoes.
5- New markets are being discovered for India's gems and jewelery exports. Diamond business alone employs millions of people. High tariffs on Indian exports going to America will benefit competitive countries like Turkas and Thailand.
6- Shrimp farmers have also expressed concern on American tariffs. India exported shrimp worth $ 2.4 billion (Rs 21,064 crore) to the US in FY 2025. This is 32.4 percent of the total exports. India is trying to export shrimp to China, European Union (especially Spain) and Japan.
7- Apart from West Asia and Europe, the government is also monitoring Africa and Latin America to promote exports. The India-Africa trade is now more than $ 100 billion (8.77 lakh crore rupees). Trade with Latin American countries crossed $ 43 billion (Rs 3.77 lakh crore) in 2023. It is expected to touch its $ 100 billion mark by FY 2028.
8- The government has also emphasized the need to promote local consumption and protect the economy from foreign shocks. These measures include extensive changes in the GST structure. This is expected to reduce the prices of big goods like cars and kitchen equipment as well as 'daily use' items before Diwali.
9- About 30.2 percent of India's exports to the US, which is priced at $ 27.6 billion (Rs 2.42 lakh crore), will continue to be free in the US. These include drug products and active drug materials.
10- Donald Trump's tariffs came into effect from Wednesday morning. It also includes 25 percent 'fine' for purchasing Russian oil. India described it as "unjust, inappropriate and indiscriminate". In FY 2025, India exported goods and services worth $ 86.5 billion (Rs 7.59 lakh crore) to the US.
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